‘NON-NEGOTIABLE’ AS THE SUBJECT OF NEGOTIATION

How often do we hear ‘This is non-negotiable’ when you negotiate a budget with a site? Surely, quite often. If it is about site-specific or additional out-of-budget fee, negotiator will surely seek for client’s approval.

But what stands for ‘non-negotiable’ in reality and how to tackle the non-negotiability?

First, question the non-negotiability to the extent possible. If a non-negotiable fee refers to a standard clinical Site’s Local Ethics Committee (LEC) which is proved by the information on the official web-site or LEC’s SOP provided, then the negotiator has nothing to do with it. But if it is, say, MRI fee that is needs to be doubled just because in some other trial a site gets a higher amount for the same – question it.

Second, remember of the fair market value. This wink actually comes from the first one. Put it bluntly, don’t spoil the site. If they request USD 1500 for a MRI, and you know that actually the MRI costs USD 500, try to push back to negotiate the amount which is closer to the actual one. This is sometimes tough – just a real-life example: a site wants 300% increase of the MRI cost, informing this is non-negotiable as another Sponsor pays three times higher amount for the same MRI. Negotiator states that official site’s cost for this MRI is in line with the fee proposed, thus there is no reason for 300% increase. The site has nothing to object with and agrees to the fee proposed.

Third, be open and honest with a site. If possible, refer to the other sites (not naming them to keep confidentiality) that accepted the fee as it was proposed, share your concerns about non-negotiability of the higher or additional fee, gently let the site know their reluctance may have negative consequences for future trials as the site may be considered as ‘too expensive’ for the sponsors.

Forth, think about the risks of approval of a higher fee. If you negotiated USD 1000 for the screening visit with 9 sites and 1 site requested USD 3000 for the same visit and it was approved -this doesn’t actually mean you don’t put yourself and a sponsor into trouble. Consider the ‘human factor’. There were situations when Investigators from different sites discussed the budget around each other during the investigator meeting; then some raised their concerns that they are paid less than the others. This ultimately resulted in reputation failure for your client, the budget owner.

Fifth, don’t be afraid to sound black and white. If a site keeps being unreasonably reluctant and you don’t have arguments to struggle this reluctance, before you escalate this to further, ask the site if that non-negotiable fee is a deal-breaking issue. If you do this in a gentle and diplomatic manner, it might work out.

The above may be considered as something self-evident, yet bearing the above points in mind is a must-have for a negotiator whose ultimate function is to do everything possible, to apply all diplomatic weapons to turn ‘non-negotiable’ into the subject of negotiation.

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